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How Options-Trading Redditors Fed the GameStop Frenzy

Reddit traders use options to supercharge GameStop stock’s wild ride.

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Last week, GameStop stock shot through the roof as users on forums like Reddit bought up shares in droves after some hedge funds shorted the stock by as much as 240 percent. This video takes a look at how both professional and at-home options traders upended expectations for many market observers. 

Questions:

  1. Why did GameStop’s stock price skyrocket last week?
  2. Do you think stock trading apps like RobinHood should have restricted users from buying shares in GameStop? Why or why not?
Author: NickelsMcHughMcHugh